03:10 PM EDT, 10/23/2024 (MT Newswires) -- Nexgold (NEXG.V), which is acquiring Signal Gold ( SGNLF ) , on Wednesday announced the upsizing of a concurrent financing, to $17 million, subject to an option to further increase a Hard Dollar Financing by an additional 15%.

The financing is being carried out in connection with NexGold's acquisition of Signal to create a near-term gold developer. The combined company will advance NexGold's Goliath Gold Complex Project in Northern Ontario and Signal's Goldboro Gold Project in Nova Scotia.

Signal's previously announced private placement financing has been amended to 103.4 million subscription receipts at $0.08705 each, to raise up to $9 million (Hard Dollar Financing), with an option to offer up to an additional 15.5 million receipts for additional proceeds of up to $1.35 million.

Proceeds of the Hard Dollar Financing will be used by the combined company to retire certain debt, the exploration and advancement of the Goliath Project and Goldboro Project and for working capital and general corporate purposes.

The terms of the flow-through offering of NexGold will remain unchanged. NexGold will now offer up to 10 million FT units at $0.80 each to raise $8 million. Each FT unit is comprised of one flow-through share and half a warrant.

The combined financings are expected to close early next month.

Both NexGold and Signal were unchanged at last look.